Cloud-Based Accounting and Financial Reporting Quality in Nigeria: A Study of Nigerian Banking Industry

Abstract

This study examined the effect of cloud-based accounting systems (CBAS) on the financial reporting quality (FRQ) of Deposit Money Banks (DMBs) in Nigeria. Specifically, it assessed the influence of CBAS on financial report transparency and disclosure quality, the reliability and accuracy of reported earnings, and the timeliness and efficiency of financial reporting. A survey research design was adopted, targeting professionals directly involved in financial reporting processes within licensed Nigerian DMBs. Using G*Power, a minimum sample size was determined; however, 400 respondents were surveyed to enhance generalizability and statistical robustness. Primary data were collected through a structured questionnaire measured on a five-point Likert scale and analysed using SPSS, employing descriptive statistics, correlation, and multiple regression analysis. Findings revealed that CBAS significantly improved transparency and disclosure quality, with cost-effectiveness, security and compliance, and integration and scalability emerging as key predictors. The results further showed that security and compliance, integration and scalability, and user-friendliness significantly enhanced the reliability and accuracy of reported earnings. Additionally, integration and scalability and cost-effectiveness positively influenced the timeliness and efficiency of financial reporting, although user-friendliness exhibited a negative effect on timeliness. Overall, the study concludes that CBAS significantly enhance financial reporting quality in Nigerian DMBs and recommends strategic technological investment, capacity building, and supportive regulatory frameworks to maximize digital transformation benefits in the banking sector.